For now, I am assuming that you understand DCA and are looking for DCA bots and apps to help you automate this strategy. There are more benefits of the DCA investing strategy that I will cover in a separate guide. Here are some of the notable benefits of the DCA strategy: I will be talking about such bots in this guide as well. With automated DCA bots, you can not only accumulate cryptocurrencies, but you can automatically sell when the price appreciate to your target. ![]() However, since cryptocurrencies are acting like tech stocks, you as a trader can approach DCA bot in a different manner. It will work good for projects which you wish to accumulate and do not wish to sell for years. The above example was for long-term investors. Since the idea here is to accumulate for the long term, instead of giving into FOMO, you basically added discipline to your accumulation. Irrespective of the price of Bitcoin, you execute this strategy of buying every day at a defined time. Instead of investing $10000 to buy BTC at once, you decide to buy worth $500 every day at 10 A.M. ![]() Suppose, you wish to buy Bitcoin worth $10000. Note: DCA strategy is also well known as SIP (systematic investment plan) in various regions. Especially if you find yourself FOMO-ing frequently or buying crypto at the top, DCA is one strategy that you should follow. In my 9 years of investing journey, DCA strategy has helped me the most to stay sane, ride out market downturns, and reduce risks. DCA (Dollar-cost averaging) is an investment strategy that adds discipline to your journey as an investor.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |